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Annual Report

2017People first #ChangingLives

General informationUnjani Clinics NPC is a registered non-profit company without members.

Business Name: Unjani Clinics NPC

Registration Number: 2014/089277/08

Public Benefit Organisation Number: 930047735

Physical Address: 57 Sarel Baard Crescent, Rooihuiskraal, Centurion, 0157

Contact Numbers: 012 621 4300

Email: [email protected]

Website: www.unjaniclinic.co.za

External Auditors: Deloitte (operating as Deloitte & Touche in South Africa)

Bankers: Rand Merchant Bank

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UNJANI CLINICS – ANNUAL REPORT 2017

Our journey

General Information Operational highlights 3

From the CEO 4

Foreword by GIZ South Africa 6

Investment for change 7

Statement of responsibility and confirmation of accuracy of the Annual Report 8

Legislative and other mandates 9

About Unjani Overview 11

Organisational structure and governance 11

Organogram: Unjani Clinics NPC 12

Business model 13

Investment and sources of revenue 13

Opening an Unjani Clinic: from start to finish 15

A South African Story of Hope 17

Situational analysis 18

Opportunity 18

Organisational environment 18

Development impact 19

Celebrating our achievements 19

Annual Financial Statements Directors’ responsibility and approval of the annual financial statements 26

Independent auditor’s report on the summary financial statements 27

Directors’ report 28

Statement of Comprehensive Income 29

Statement of Financial Position 29

Statement of Changes in Equity 30

Statement of Cash Flows 30

Basis of preparation 31

Accounting policies 31

List of abbreviations/acronyms 32

INTRODUCTION

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General Information

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Operational highlights

Figure 1: Highlights since inception (2014 – 2017)

*January 2013 to December 2017

** Average for 2017

nurse-led primary healthcare initiative in SA

Patients served*

R-million enterprise development funding

Average patients per month**

Clinics in Network

Industry awards

Black women-owned clinics

Unqualified audits Permanent jobs created

1st

404 665

50

16 670

38

5

100%

100% 130

Tales of trial and triumphDetermination…

“I decided to become a nurse after tagging along as a young girl with my aunt who is a nurse. Seeing how she interacted with the community and how much she helped people set the path for me to also enter the nursing profession. I joined the Berea community at the right time, when government decided to close one of the nearby clinics. My Unjani Clinic happened to be the convenient alternative and the community has since embraced the clinic as affordable, quality healthcare that is easy to access. I can confidently say the community is loving it!

My advice to potential clinic owners and any other women who want to run their own business is to remember it takes plenty of discipline, patience and time to get it right. Especially as a woman, running a business as well as managing your family and all the other obligations that come with being a woman can be exhausting. Getting your clinic to become an accepted part of a community can take up to two years or longer and each day is a learning curve. However, seeing the fruits of your efforts in the daily improvement of patients’ lives is a reward in itself – not only in immediate care but also in the long-term health of the people you get to know like your own family.”

Sister Gertrude Nare – Unjani Clinic Berea, opened in July 2015

GENERAL INFORMATION

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From the CEOUnjani? How are you?

The 38 community clinics we have built to date with the generous support of donor funding are the embodiment of two principles we desperately need in South Africa today – trust and hope in better healthcare for all. Trust, because we know that the governance and operational expertise, which are the foundation of each Unjani Clinic, means that patients are guaranteed respectful, informed and dignified attention in an acceptable and hygienic environment; and hope that by following the Batho Pele (“People First”) philosophy, we are finally on the road to narrowing the vast divide between quality private and public healthcare services.

Strategy and performance Unjani Clinics is a network of black women nurse-owned clinics that operate within communities and provide low-cost primary healthcare services to the employed but uninsured. Our strategy is simple: Provide patients with the right care first, thereby preventing and reducing the need for extended medical services at overburdened public health establishments and expensive private entities. At the same time, the model empowers professional nurses to manage (and ultimately own) their own clinic within a sustainable structure of support, as well as creating jobs by employing support staff.

Transparency, accountability and good governance are the foundation on which both Unjani Clinics NPC and our Network of Clinics are built. To this end, we are exceptionally proud to have achieved a 100% unqualified audit opinion again this year, for the third year running.

Operational achievements In three years we have gone from being the first and only Professional Nurse-driven private primary healthcare network in South Africa to building a network of 38 clinics, including replacing three defaulting pilot clinic nurses. To date, the clinics have served 404 665 patients and continue to serve an average of 16 670 patients per month. We believe it shows our competence in selecting the right Professional Nurse partners, selecting the correct sites, training the clinic staff and deploying the clinics. Even more satisfying is the clinic patient statistics, which are way ahead of target, further underpinning the core team competencies, but more importantly, proving the incredible potential of this amazing business model.

This year our efforts were recognised by top industry awards such as the American Chamber of Commerce Stars of Africa Awards 2017, in which Johnson & Johnson won Gold for the Unjani Project, the Institute of Risk Management SA Award for Healthcare and the Mail & Guardian Leaders of the Future Business Award (runner-up).

Welcome to the Unjani Clinics Non-profit Company (NPC) Annual Report 2017. It gives

me enormous pleasure to present Unjani Clinics NPC’s first annual report since our

incorporation in 2014. Our achievements in just three years have far exceeded our own strategic objectives, and indeed, the expectations of our Professional Nurses, community, patients and

donors. This report is a celebration of those achievements and provides all stakeholders

with an overview of our organisation, where it has come from and where we are going.

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Future outlook Not only is Unjani Clinics an investment in the socio-economic welfare of a country, but it is an investment in people – empowering women to empower communities. With 10 million employed but uninsured people in South Africa the opportunity exists, and our strategy is to meet their needs through our Unjani Clinic Network. Yet, in order for Unjani Clinics NPC to be independently sustainable and not reliant on external funding, 55 Unjani Clinics are required, which is only possible through the continued funding of current donors as well as the contribution of new investors.

Acknowledgments and conclusionFirst, I would like to express my gratitude to the organisations who have already invested R50 million in the Unjani Clinic Network since inception: The Imperial Group, the Johnson & Johnson Citizenship Trust and Johnson & Johnson Family of Businesses; The Jobs Fund; Pfizer South Africa and The Pfizer Foundation; Rand Mutual Assurance; The Tiso AEL Development Trust; The Elma Foundation; and the German Ministry for Economic Cooperation and Development.

My heartfelt thanks also go out to the Professional Nurses who have wholeheartedly embraced this opportunity to offer dignity and care to underserved communities. As well as providing a desperately needed health service, and participating economically, it is also a visible labour of love for many of these nurses, a living example of Batho Pele.

Finally, thank you to the Board members and staff of Unjani Clinics NPC. Your commitment and willingness fuel our mutual efforts and are the reason behind our successes.

While our journey has barely started, we are excited about its direction and even more so about its destination.

Lynda Toussaint

Chief Executive Officer

Date: 31 December 2017

Tales of trial and triumphDetermination…

“My main source of inspiration comes from an innate desire to help people and care for them in times of need. It’s personal. Being an Unjani Clinic owner is more than being a nurse or an entrepreneur. It is being a community role model. Since opening the clinic, community members visited me even if they’re not there for a consultation. They come for advice and for moral support. That’s a sign of trust. They feel you as clinic nurse are equipped to help them with their problems, which in turn helps me educate them about holistic wellbeing and long-term health benefits for their families. It is an absolute privilege to be able to help people on a daily basis.”

Sister Virginia Ndimande – Unjani Clinic Winterveldt, opened November 2014

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Foreword by GIZ South Africa

Leveraging a strategic partnership for bridging the gap between public and private healthWe got to know of Unjani Clinics in September 2013 as a CSI initiative of Imperial Health Sciences when they had merely six clinics and were experimenting with the concept of a fee-for-service model for primary healthcare container clinics. Fascinated by the idea of delivering a professional service offering to an under-served part of the population, the employed uninsured, who cannot afford exclusive private healthcare but who could pay reasonable amounts for quality service, we started the conversation of partnering up. Our three-year cooperation agreement was signed in April 2016; by then the network had grown to 17 clinics, which gave us the sense that we are getting involved with a dynamic venture.

The Unjani Clinic Network has come a long way since then. Not only has the very energetic and passionate CEO, Lynda Toussaint, with the help of her strong Network Operations Manager, Sue Hoosain, almost single-handedly grown the network to 38 clinics by end of 2017, she has also perfected the selection process of the start-up nurses including site selection, induction, training and support and all related business processes. GIZ, on behalf of the German Government, is providing technical advice enhancing the growth of the Clinic Network with monitoring and evaluation and ICT, with linkages to the Department of Health and last but not least with the idea of linking the clinics to the surrounding enterprises by offering clinical services that contribute to improving employees’ working conditions. GIZ differentiates itself from other funders by offering technical rather than pure financial input.

We are enormously proud to be part of this initiative, which showcases a successful self-sustaining and inclusive social enterprise-model.

Gavin Watson

GIZ South Africa

Head of the Centre of Cooperation with the Private Sector

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is a federal enterprise with worldwide operations in 130 countries. On behalf of the German Government it supports in the fields of international development cooperation for sustainable development and international education. Through its work, GIZ assists people and societies in shaping their own futures and improving living conditions. The German Government supports South Africa in reaching its goals as defined in the National Development Plan. Unjani Clinics has been supported by a regional programme called Employment for Sustainable Development in Africa (E4D), which seeks to create employment, improve working conditions and salaries.

GENERAL INFORMATION

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Investment for change People worldwide are dissatisfied with existing health systems. One of the greatest concerns is the increasing cost of healthcare, with millions of people unable to access quality healthcare. According to the World Health Organization (WHO), this can be ascribed to “health systems and health development agendas evolving into a patchwork of components – with resources invested disjointedly in the different levels of care. A vast proportion of resources are spent on curative services, neglecting prevention and health promotion that could cut 70% of global disease burden.”

Primary healthcare was put forward 30 years ago as a way for countries to improve equity in access to healthcare and efficiency in the way resources were used. In short, primary healthcare offers low income patients and their families access to a full range of affordable, high quality healthcare in their community, with a strong focus on prevention equally as important as cure.

Mobilising changeAs the first and only nurse-led initiative and network in South Africa, Unjani Clinics is a unique model based on global best practice in nurse practitioner clinics. The clinics offer convenience, quality and affordable primary healthcare in the communities that we serve. Patients do not have the long waiting queues experienced in government facilities, they have the convenience of walking to their local Unjani Clinic instead of finding transport and they are guaranteed the medicines or referral required to treat their diagnosis. Access to affordable primary healthcare is thus enhanced through the Unjani Clinic Network.

For Patients For Professional Nurses For Job Seekers

Primary healthcare services that are:

• Convenient,

• Accessible,

• Affordable, and

• High quality.

Empowers black women nurses within their communities to:

• Become entrepreneurs within a solid support structure,

• Lead the effort in transforming the healthcare system,

• Develop management and operational skills through ongoing coaching and mentoring, and

• Ultimately own their businesses.

Clinics are aimed at becoming sustainable micro enterprises that create value in communities with the potential to create five job opportunities per clinic:

• Three full-time sustainable jobs, and

• Two further jobs as patient numbers increase.

Figure 2: Unjani Clinics’ primary stakeholder value-model

A clear sense of directionThe business focuses on the employed but uninsured market. Given that Unjani Clinics provide an affordable alternative (R180 consultation fee including medication) to patients in communities that are able to pay something towards their healthcare needs, but cannot afford medical aid insurance or private general practitioner rates; these patients move away from the government healthcare facilities, freeing up capacity in the government facilities to deal with the unemployed and destitute.

With 38 Unjani Clinics currently in the network, we are on track to achieve the target of 70 clinics by December 2019 (19 clinics in 2018, and a further 13 clinics in 2019). In order for Unjani Clinics NPC to achieve sustainability, 55 clinics need to be implemented and fully operational. This means that that the monthly network fees paid by the 55 Network Clinics will support Unjani NPC’s operational costs and it will no longer be reliant on external funding.

The patient statistics reflect the support for this initiative and its innovation. Since inception (January 2013) to date 404 665 patients have been served through the Unjani Clinics Network with clinics now averaging 16 670 patients per month.

Please refer to page 13 of this report for the Unjani Clinics Network’s current sources of revenue and investment requirements.

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Statement of responsibility and confirmation of accuracy of the Annual ReportTo the best of our knowledge and belief, we confirm that:

All financial information and amounts disclosed in this Annual Report are consistent with the annual financial statements audited by Deloitte & Touche (Deloitte South Africa) as external independent auditor.

The Annual Report is complete, accurate and free from any omissions and the annual financial statements have been prepared in accordance with the International Financial Reporting Standards and the requirements of the Companies Act of South Africa as it applies to a Non-profit Organisation and Public Benefit Organisation.

The accounting authority is responsible for the preparation of the annual financial statements and judgments made in this information. The accounting authority is also responsible for establishing and implementing a system of internal controls designed to provide reasonable assurance about the integrity and reliability of the performance and human resources information and the annual financial statements.

The external auditors (Deloitte) were engaged to express an independent opinion on the annual financial statements.

In our opinion, the annual report fairly reflects the operations, performance and human resources information to 31 December 2017 and financial affairs of Unjani Clinics NPC for the financial year ended 30 June 2017.

Lynda Toussaint

Chief Executive Officer

Date: 31 December 2017

Tales of trial and triumphMotivation…

“Managing my own clinic has provided me with the opportunity to connect with my patients on a one-on-one level. This in turn enables me to provide the support, guidance and education they aren’t able to get from the state health system. My advice to aspiring clinic owners is to love and be passionate about what you do and be willing to go the extra mile to help others. Most of all stay humble and respect other people’s culture and religion.”

Sister Cynthia Yeko – Unjani Clinic Orange Farm, opened July 2015

GENERAL INFORMATION

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Legislative and other mandatesUnjani Clinics is registered as a Non-profit Company under the Companies and Intellectual Property Commission (CIPC) and a Public Benefit Organisation under the Income Tax Act, 1962 (Act No. 58 of 1962). As a registered non-profit entity in the Health and Safety sector, Unjani Clinics operates within the regulatory framework of a number of different reporting requirements.

South Africa currently has a myriad of laws that govern the non-profit sector, and which apply at national level. The legal framework for Unjani Clinics can best be explained by dividing it into three primary layers.

Figure 3: Unjani Clinics NPC legislative framework

The regulatory requirements for organisations affecting public health and safety are determined on a sectoral basis and relating to Unjani Clinics include, among others, the following:

• The National Health Act, 2003, as amended (Act No. 61 of 2003) (NHA),• The Protection of Personal Information Act, 2013 (Act No. 4 of 2013) (PoPI),• Promotion of Access to Information Act, 2000 (Act No. 2 of 2000) (PAIA),• National Policy on Quality in Healthcare, 2007 (NPQ),• National Core Standards for Health Establishments in South Africa (NCS),• National Health Insurance (NHI),• Batho Pele and the Patient’s Rights Charter,• National Development Plan (NDP), and• Other legislation relevant to the delivery of health services.

Licensing and Governmental Approvals

Non-profit companies such as Unjani Clinics NPC that hold assets in a fiduciary capacity for persons who are not related to the company, and the aggregate value of such assets exceeds R5 million are required to be audited by the Companies Act, 2008 or Regulation 28.

Companies Act

Allows entities already registered as Non-Profit Organisations to register as Public Benefit Organisations. This entitles such organisations, like Unjani Clinics, to a broad range of tax benefits, including income tax exemption and the right to receive tax-deductible donations. These Public Benefit Organisations receive so-called donor deductible status.

Income Tax Act

Three layers of Unjani Clinics Legal Framework

About Unjani

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OverviewUnjani Clinics is a network of black women-owned clinics that provide a full range of holistic primary healthcare services at low cost to employed but uninsured patients – at their point of need. The clinic network operates under the management of Unjani Clinics NPC, an enterprise development initiative aimed at:

• Empowering black women Professional Nurses,• Creating permanent jobs, and• Perfecting a sustainable clinic model for providing primary healthcare.

Purpose With over 80% of our population dependent on an overburdened public health system, hospitals and clinics in the public sector simply cannot cope with the increasing healthcare burden. At the same time private healthcare is too expensive for the bulk of the population. The Unjani Clinics model and network was developed to address this inequality between private and public healthcare services in our country.

Mission To empower black women, build a sustainable network of nurse owned and operated primary healthcare clinics nationally and create permanent jobs.

Vision• To build a successful network of nurse owned and operated clinics. • To set the benchmark for delivering quality and affordable healthcare services to the people of South Africa. • To serve the network with the same passionate commitment that they provide to their patients.• To provide business mentoring and coaching for sustainable enterprises.


“When there is a shortage of medication from the local clinic, patients come to me for their medication. I also have enough time to listen to the patients. The clinic has got privacy, it is clean and there are no long queues, and most important of all – it is affordable. Patients tell me my hands are warm and they are happy with my service. My advice to aspiring clinic owners is that customer service must be perfect at all times.”

Sister Molly Segobola – Unjani Clinic Kwaggafontein, opened January 2016

Organisational structure and governanceOriginally pioneered by Imperial Health Sciences, a division of Imperial Logistics (Imperial Group Limited), the concept was developed out of the need for the urgent transformation in the healthcare system in South Africa, the fact that our country faces the triple affliction of HIV, AIDS and TB and a costly curative-care based model versus disease prevention and promotion.

The initiative is delivered through a Non-Profit Company registered as Unjani Clinics NPC, who acts as the support structure in the relationship. The legal structure is based on a Non-Profit Company, without members; however, the NPC Board is currently made up of Imperial Group directors.

This NPC structure was put in place to provide maximum funding benefit to the stakeholders of Unjani Clinic NPC, the professional nurses that join the network as well as the funders or donors to the NPC (who will receive the necessary legal and tax exemption certificates). All of the clinics are Exempted Micro Enterprises – 100% black women owned and their turnover levels are below R10 million annually, thus, the relevant Broad-based Black Economic Empowerment (B-BBEE) Affidavits are provided to all funders to ensure that they meet the Department of Trade and Industry (the dti) Scorecard requirements.

GovernanceDifferent governance structures are in place for voluntary associations, trusts and Section 21 companies. One of the requirements for registration under the Companies Act and Income Tax Act is that an organisation must set out in its founding documents the organisational structures and mechanisms for its governance. Section 30 of the Income Tax Act imposes further conditions on the governance and operations of Public Benefit Organisations. For example, the organisation’s

ABOUT UNJANI

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constitution must provide that there are at least three unrelated persons with fiduciary responsibility for the organisation and no single person may directly or indirectly control the decision-making powers relating to the organisation.

Management CommitteeUnjani Clinics NPC currently has a staff complement of seven. In 2017, the team was expanded to include a Wellness Programme Manager to spearhead the Unjani Wellness Programme that will be offered to the staff of small and medium enterprises (SMEs) that operate within the same communities as the Unjani Clinics and corporate organisations. This will enhance the revenue streams of the Unjani Clinics, and offer a much-needed service to the staff of these organisations. In addition, for every ten clinics opened, a Field Support Officer will be employed to provide much needed on-the-ground operational support to the clinics.

Table 1: The Unjani Clinics NPC management team

Lynda Toussaint Chief Executive OfficerSue Hoosain Network General ManagerCisca Buys Wellness Programme Manager Rita Steele Accountant

Board structureUnjani Clinics NPC’s Board provides operational oversight and strategic guidance.

Table 2: Unjani Clinics NPC Board Members

Dr Iain Barton Non-executiveTjaart van der Walt Non-executiveBerenice Lawrence Non-executiveLynda Toussaint Executive

Advisory CommitteeUnjani Clinics NPC has an Advisory Committee who augments the knowledge and skills of the Board members for them to more effectively guide the organisation.

Table 3: Unjani Clinics NPC Advisory Committee

Farouk Seedat Imperial LogisticsHafiz Mohammed Chairman of Advisory Committee

Organogram: Unjani Clinics NPCChief Executive Officer

Lynda Toussaint

AccountantRita Steele

Wellness managerCisca Buys

Network General Manager

Sue Hoosain

Financial AdministratorFreddah Mabona

Financial Assistant(Vacant)

Office AssistantEric Masehla

Network CoordinatorMirriam Mosala

Network Support Operator(Vacant)

Admin Clerk(Vacant)

Figure 4: Unjani Clinics NPC organogram

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Business model The innovation behind Unjani Clinics is based on shifting primary healthcare tasks to Professional Nurses and the ability to leverage a highly developed and extensive private sector distribution network to ensure more people have access to medicines.

The Unjani Clinics network empowers women within their communities to own and lead the effort in transforming the healthcare system. At the front-end of the clinic delivery mechanism, the financial model has been tried and tested to ensure that sustainability presupposes commercial viability. All clinics in the network are given the business support and ongoing coaching and mentoring to succeed and make a profit.

There are currently 38 clinics in the Unjani Clinics Network. Founded on an owner-operator model, our clinics serve the bottom-of-the-pyramid and under-served markets; ensuring an affordable, quality primary healthcare service and the supply of quality medicines to the people of South Africa. The clinics are based in the rural township communities of our country, ensuring that the service is delivered at the point of need.

Each Unjani Clinic offers:

• Primary healthcare ailment diagnosis and treatment including medication,• Wound care,• Family planning,• Well Baby Clinic, including immunisation,• Basic ultrasound services,• Laboratory blood services,• Treatment and management of patients on antiretroviral therapy,• Wellness screening,• Antenatal clinic, and• HIV counseling and testing.

Each clinic guarantees three full-time sustainable jobs and has the potential for a further two jobs as patient numbers increase. We have proven that Unjani Clinics offer a higher quality of care and more reliable service compared with other market offerings. The bundled pricing (consultation including medicines) is affordable and relevant to the low-income patients we serve.

Investment and sources of revenueDonor fundingApproximately R50 million has already been invested in the Unjani Clinic Network since inception, funded by the Imperial Group (50%); the Johnson & Johnson Citizenship Trust and Johnson & Johnson Family of Businesses (19%); Jobs Fund (9%); Pfizer SA and The Pfizer Foundation (5%); Rand Mutual Assurance (5%); The Tiso AEL Development Trust (5%); The Elma Foundation (5%) and the German Government (2%).

Enterprise development funding has been provided by the Imperial Group to roll out the first 25 clinics, and in addition, we have secured funding for 12 clinics over the next three years (2016 to 2018) from the Johnson & Johnson Citizenship Trust and Johnson & Johnson Family of Companies. Pfizer South Africa funded an Unjani Clinic during 2016. Rand Mutual Assurance funded two semi-rural clinics in 2017. The Tiso AEL Development Trust funded four clinics in 2017/18, and with matched funding from some of these corporates and grant funding from the Jobs Fund (National Treasury) we will have 70 clinics by December 2019. A three-year co-operation agreement signed with GIZ in 2016 will assist Unjani Clinic NPC with National Department of Health linkages, information and communications technology (ICT) development and support, growth and expansion plans and the implementation of a wellness programme.


“I’ve become a provider not only for my benefit but also for others. There is something great about knowing I make a daily difference in people’s lives. I have turned my passion and beliefs into a business and that is something that fulfils my soul. Every day as an Unjani Clinic owner I grow and develop; both as a business person and as an individual.”

Sister Phindi Nkosi – Unjani Clinic Windmill Park, opened October 2014

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Network feesIn addition to donor funding support, a monthly network fee is charged to each Network Clinic to cover some of the operational expenses of Unjani Clinic NPC. The Elma Foundation Growth Fund award (for the period 2017 to 2019) will be used specifically for operational cost absorption and will assist in achieving sustainability sooner than anticipated.

Table 4 describes the monthly network fee payable by each Professional Nurse-owner, as governed by the Enterprise Development Agreement.

Table 4: Monthly Clinic Network fees

Five-year enterprise development period Monthly fee (Rand, excl. VAT)

Year 1 2 667

Year 2 3 385

Year 3 4 725

Year 4 5 400

Year 5 6 075

Major costsThe main costs associated with the project include:

• Infrastructure (converted shipping containers) and signage which is donated to the Professional Nurse,• Clinic equipment, initial stock and internals (furniture, clinic equipment, computer equipment) which is donated to the

Professional Nurse,• Operational donations paid to the Professional Nurse for the first 24 months of trade (to assist with working capital

requirements until patient numbers reach break-even):• R12 000 pm for the first 8 months,• R8 000 pm for the next 8 months,• R4 000 pm for the last 8 months, and

• Unjani Clinics NPC support, training and operating costs.

Investment/funding requirementsUnjani Clinic NPC views investment in each clinic as an investment in the Professional Nurse over the five-year enterprise development period. Depending on the infrastructure format required (rural, semi-rural or peri-urban) the investment cost is between R1 million and R1.2 million per Professional Nurse and the breakdown of this approximate cost can be seen in Table 5.

Table 5:

Cost structure Investment cost

Clinic Infrastructure and Equipment R550 000 to R750 000

Operational Donations R200 000

Unjani Clinics NPC Support Costs R250 000

Tales of trial and triumphInspiration…

“I met a teenage girl in March 2016 who had not been to school since January and had seen different doctors, been to a clinic and had been admitted several times to hospital for tension headaches. I spoke to the girl privately without her parents and found she was about to kill herself. I counselled the girl and the family and did a follow-up home visit. The girl has since gone back to school and is doing well in her studies. I’ve realised that not only am I a nurse but also a social worker and counsellor.”

Sister Phindile Nkosi – Unjani Clinic Windmill Park, opened October 2014

ABOUT UNJANI

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Opening an Unjani Clinic: from start to finish

Application and selectionTo become a part of the Unjani Clinics Network, interested Professional Nurses complete an initial enquiry form and submit this for evaluation to Unjani Clinics NPC. Applicants need to comply with the following minimum selection criteria:

• Registered Professional Nurse,• Primary healthcare experience,• Dispensing certificate, and• Clear criminal and credit record.

If the Professional Nurse meets the minimum selection criteria, she is asked to complete a detailed application form, perform a site survey and present a business proposal to a panel of Unjani Clinics NPC’s staff.

If the Professional Nurse is successful in her proposal, she is awarded a five-year Enterprise Development Agreement (EDA), which includes the following:

• Donation of the infrastructure and clinic equipment,• 24-months of operational donations, and• Required support, mentoring and training required throughout the agreement term in order to

transform her into an entrepreneur but also ensure that a sustainable micro enterprise will emerge from the process.

Site selectionSite selection is left to the Professional Nurse, on the premise that she generally comes from the community or lives in the community and as such receives immediate community support. The Professional Nurse is required to negotiate a lease with the owner of the land (privately owned land with business rights). Unjani Clinics NPC will review the lease and will negotiate any onerous terms with the landlord.

Site survey and inspectionA site survey (using the Unjani Clinics template) of at least 200 community members then has to be completed by the Professional Nurse. Once completed, she will summarise the results and present her findings and a business proposal to a panel at Unjani Clinics NPC. The site survey will determine need, but more importantly, community affordability. Although a need for primary healthcare services will be evident in all communities, given that the model is a paid-for service, patients will have to be willing and able to pay for the service in order for the Unjani Clinics model to work in a particular community. The site survey is supported by desktop research performed by Unjani Clinics NPC, which looks at population, geographic, demographics, disease profile and healthcare facilities in the area.

A site inspection is then performed by the implementation and operational teams to ensure that the site is suitable for clinic construction and to ensure that the required infrastructure (electricity, water and sewerage) is in place. A variation order will be raised by the team (if required) for items not covered in the standard costings (e.g. site levelling, infrastructure connections in excess of standard (20 m), etc). If the variation order is acceptable (between 5% and 10% of the standard costing), the site will be confirmed and a project timeline is agreed for clinic implementation.

ABOUT UNJANI

ABOUT UNJANI

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Construction and set-upBased on the information gathered, the type of clinic format is determined:

• Rural format (can serve 750+ patients per month),• Semi-rural format (can serve 1 200+ patients per month), or• Peri-urban format (can serve 1 500+ patients per month).

Unjani Clinics NPC has selected a turnkey implementation team (JSM Projects (Pty) Ltd) to implement the clinic infrastructure. This relationship is governed by a Service Level Agreement and standard format costings. The service offered is a full turnkey service, including container acquisition, refurbishment, site preparation, transport, clinic deployment and connection to facilities.

Once the implementation team has completed construction, a site hand-over document is signed by the Network General Manager as evidence of acceptance of the project. The Network General Manager and operations team will then set the clinic up, which include clinic equipment, furniture, stock and consumables and internal signage.

Training and marketingTo ensure that the Professional Nurse is fully vested in the venture, she is required to pay an upfront commitment fee of R10 500. This fee is reinvested in the training costs of the nurse. Before opening the clinic, the Professional Nurse and her Clinic Assistant are required to undergo five days of intensive training. The training has been developed in-house and specifically covers the Unjani Clinic Support Manual, standard operating procedures, finance and administration, human resources and systems training.

Once the classroom training has been completed, an attendance register and copies of the training certificates are held on file at Unjani Clinics NPC as proof of completion. Local marketing is then undertaken in the community to create awareness of the clinic opening with flyer and leaflet distribution, as well as “opening soon” banners displayed at the clinic site.

Open for business!Once the clinic opens, the Network General Manager will spend two to three weeks in the clinic, ensuring that the classroom training is practically implemented by both the Professional Nurse and Clinic Assistant. Processes have been kept simple to ensure that repetition underpins understanding. The Professional Nurse is required to sign off receipt of the clinic (a set-up document signed by the Professional Nurse and Network General Manager which details all clinic internals, the clinic infrastructure and stock received by the Professional Nurse). After sign off, the Professional Nurse is responsible for the clinic and takes full operational ownership. She is responsible for the payment of all clinic operational expenses, and receives all clinic revenue from day one.

Review and networkingTo ensure compliance with the EDA and standard operating procedures, operational and financial audits are undertaken quarterly by Unjani Clinics NPC operations and finance team. Any uncorrected or material breaches by the Professional Nurse could result in termination of the EDA and the clinic being reallocated to another Professional Nurse; therefore, the risk to the Professional Nurse of non-compliance is significant.

Quarterly networking days are held to ensure that all Professional Nurses meet to share best practices, deal with practical complexities and learn about updated procedures. In addition, the platform provides suppliers with an opportunity to train the nurses on disease management programmes, new industry developments and new products on the market.

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A South African Story of Hope

A SOUTH AFRICAN STORY OF HOPE

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Situational analysis Cost and easy access is still a major barrier to primary healthcare for rural and low-income communities in South Africa. In 1994, South African health policies attempted to reduce inequity within the health system by removing primary healthcare user fees for low-income households. Yet, more than two decades later, low-income households still face greater barriers to accessing primary healthcare than higher income households.

Most people’s best option for finding health services is the nearest public health clinic. However, studies have found that interestingly, the second most popular option was to “do nothing”, until they felt seriously ill. The reasons why people delay, or avoid, seeking formal healthcare include:

• They don’t consider their illness as serious enough,• It is difficult to access public facilities, in terms of travel time and/or high transport costs, and• The low quality of care and lack of dignity provided at healthcare facilities, for example rude health workers, long

queues, inadequate consultation times, and inadequate equipment and medication.

People’s vulnerability to ill health is vastly increased by not accessing primary healthcare services at the point of need. Studies have shown that people from higher-income households with some medial insurance are more likely to seek healthcare, than people with the lowest household income, who prefer to wait as long as they can before incurring the costs associated with getting healthcare.

OpportunitySouth Africa has a population of 55 million+ people. Approximately 9.7 million people insure their healthcare with private insurance companies, with 4 million people representing the main members, and the balance of 5.7 million people as their beneficiaries. The balance of the population (45 million people) either self-insures or relies on government for their healthcare needs. It is common knowledge that government is unable to meet the healthcare needs of its people and that government facilities and staff are under severe strain. This results in bad staff attitudes, inadequate equipment and medication and long queues.

The Unjani Clinics Network aims to assist government facilities by relieving them of patients that are able to pay something towards their healthcare. Our focus is on the employed uninsured market (some 10 million-odd people in South Africa); the population portion which has access to some level of contribution to their healthcare needs, but who cannot afford a private general practitioner (GP) consultation or the cost of private medical aid. Unjani Clinics offers an affordable alternative to the more expensive private GPs.

Not only is the South African healthcare service industry under severe strain but the availability of doctor resources is also problematic. As a result, the need to task-shift to suitably trained Professional Nurses is a necessity to deal with the needs of the South African population.

The availability of funding or personal loans for Professional Nurses to open their own private practices in South Africa is unheard of, and as a result, nurses without private or personal capital funding are forced to take up employment as opposed to following an entrepreneurial route. The Unjani Clinics model provides selected nurses with the motivation and inspiration to access a “once-in-a-life-time-opportunity” investment to raise their profession and training to another level, give back to their communities, and in return, receive reward.

There is no other nurse-led network offering in South Africa that offers affordable rates for primary healthcare services, and for the first time patients have a choice where to spend their hard-earned money.

Organisational environmentThe commercial element of Unjani Clinics exists in the Clinic Network structure. Unjani Clinics NPC is a lean back-end structure which operates and is sustained through the receipt of funding from donors and monthly network fees. Costs incurred on behalf of the clinics are recovered from the clinics on a monthly basis and nurse-owners have to pay a monthly networking fee to the NPC to cover support and operational costs.

On the front end, our experience to date demonstrates a viable and tested financial model. Based on our average monthly patient target numbers of 180 patients in year one, 250 patients in year two and 350 patients in year three, each clinic will break even by the second year of operation. The fees (R180 per consultation, including medicines) generated from patient consultations are used by the nurses to cover their monthly operating costs.

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However, given the low-cost pricing model, an operational support donation is provided to the clinics to furnish nurses with working capital for the first two years of operation to ensure sustainability. The operational support donation is not intended to create a culture of dependence, and only upon achievement of strict targets and following operational procedures, do the clinics qualify for operational support.


“One of my patients was a lady who had been diagnosed with depression. At the clinic she found the support to help her cope with daily living. She has become a different person and has since made a proposal to start a support group for depressed and stressed women. We are now trying to organise such a group. I believe that touching one life at a time will lead to a happy community. I hope to expand the services offered at the clinic to include social and maternity services. It pains my heart to hear the experiences that some women have at the hands of uncaring nurses during child birth. I hope to have an ambulance to transfer patients to hospital and to open an adolescent centre to keep the youth off the streets and to help them understand healthy living from an early age.”

Sister Martha Modiba – Unjani Clinic Klipfontein, opened February 2015

Development impact The development outcomes that will be achieved through this project are permanent job creation for over 230 people over a five-year period, as well as systemic change and transformation within the healthcare system in South Africa. Based on a clinic network of 70 clinics, we have calculated that Unjani Clinics should see and treat between 350 000 and 420 000 patients annually. This means a reduction in the burden on the public health system by creating capacity in the existing government facilities, as well as ensuring that patients receive quality, accessible and affordable private healthcare at the point of need.

Moreover, Unjani Clinics empowers women to deliver affordable primary healthcare services through our innovative system of care delivery. Our ongoing coaching and mentoring is a unique benefit of this initiative, enthusiastically embraced by our nurse practitioners.

Probably the most significant beneficiaries are the patients who are living in the communities we serve. The results from our existing clinic units demonstrate a dramatic improvement in the healthcare experience compared with existing offerings in the market. On average, 80% of patients wait less than 30 minutes to be served at an Unjani clinic, with 75% of all patients reporting excellent service. The nurse-owned and operated primary healthcare model is completely new to South Africa and is a new model of care. We believe that Unjani Clinics will help change the face of healthcare as we know it and that in turn will bring about systemic change to the benefit of every South African.

Celebrating our achievementsUnjani Clinics network development Since inception in 2014, the Unjani Clinics Network has grown to 38 clinics, including replacing three defaulting pilot clinic nurses. To date, the clinics have served 404 665 patients and continue to serve an average of 16 670 patients per month.

Unjani Clinic Network mapThe current Unjani Clinic Network map is reflected in Figure 5.

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Figure 5: Network map of Unjani Clinics in South Africa 2017


“A two-year-old child was brought to me with second degree burns that affected 50% of his left hand. After the third treatment the child was completely healed and had started to use his hand. Besides being grateful that the boy had healed so well, I was touched that the mom thanked me for not blaming her for the child’s accident.”

Sister Thandi Shadung – Unjani Clinic Olievenhoutbosch, opened May 2016

Snapshot of achievements

GT

MP LP N

W

WC*

Tota

l

150

100

50

0

GT

MP LP N

W

WC*

Tota

l

40

30

20

10

0

GT

MP LP N

W WC

Tota

l

500 000

400 000

300 000

200 000

100 000

0

Number of clinics Patients served

Jobs created

24

73 4

0

38

332

186

5 07

4

11 5

51

96

7 0

33 3

40

22 5

14

404

665

18 9

130

Figure 6: Overview of performance *WC Nurse has exited the network and operates her clinic independently, figures reflected while part of the network

Kwaggafontein

Atteridgeville

Orange Farm

Olievenhoutbos

Sondela

Musina

Mkhuhlu

Tshamahansi

Diepsloot

Lehurutshe

Embahlenhle

LangavilleKhutsong

Windmill ParkKatlehongVilla LisaDaveyton

Barcelona

BapongSoshanguve

New EersterusMogogelo Moutse Mall

Siyabuswa

Nkomazi

Kanyamanzane

Winterveld Kwamhlanga

TembisaOrlando


BereaKagiso

Klipfontein

Bosman

Hammanskraal

Buhle Park

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Figure 7: Rural format (6 meter container plus 12 meter container)

Figure 8: Semi-rural format (12 meter container plus 12 meter container – side by side)

Figure 9: Peri-urban format (12 meter container plus 12 meter container)


“I performed CPR on an unconscious child and the parents thanked me for saving their only child. My advice to aspiring clinic owners: it takes a powerful and strong woman to start a business like this. Perseverance and team work will help you succeed.”

Sister Vatiswa Jingqi – Unjani Clinic Buhle Park, opened January 2015

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Clinic profitabilityAt the heart of the Unjani Clinics model is the profitability of the clinics in operation. After all, what we aim to create is a sustainable network of micro enterprises. Patient numbers (or support) drives the profitability of our clinics and our targets are based on the pilot clinic results, as seen in Table 6.

Table 6: Targets set for clinic profitability

Five-year enterprise development period

Patient numbers on average per month (target)

Patient numbers on average per month (actual)

Year 1 180 281Year 2 250 463Year 3 350 561Year 4 400 478Year 5 450 514

Patient statisticsThe majority of new clinics have outperformed these targets, taking them to sustainability and profitability (250 patients per month) much sooner than expected.

The below graphs reflect the actual patient statistics by clinic for the past three calendar years:

1000

800

600

400

200

0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

BereaBram FischervilleBuhle ParkDaveytonDelftDiepslootEtwatwaHebronKatlehongKlipfonteinKwaggafonteinMogogeloOrange FarmRiverleaTembisaTokozaVilla LisaWindmill ParkWinterveld

Figure 10: Patient Statistics for calendar year 2015


“A critical patient refused to go to hospital due to a previous bad experience. My full assessment indicated that the patient was in cardiac and kidney failure. I spent time with him explaining the diagnosis and the complications, and he eventually agreed to go to hospital. He was admitted to ICU and high care for a month. When he was discharged he came to show us his medication and his follow-up dates, and he thanked the clinic for saving his life after suffering for a long time.”

Sister Philisiwe Modise – Unjani Clinic Tokoza, opened March 2015


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1500

1200

900

600

300

0


AtteridgevilleBereaBram FischervilleBuhle ParkDaveytonDelftDiepslootEtwatwaHammanskraalHebronKatlehongKlipfonteinKhutsongKwaggafonteinKwamhlangaLangavilleMogogeloMoutse MallOlievehoutbosOrange FarmRiverleaSharpevilleSondelaTembisaTokozaVilla LisaWindmill ParkWinterveldt

Figure 11: Patient Statistics for 2016

2500

2000

1500

1000

500

0


AtteridgevilleBapongEtwatwa (Barcelona)BereaBosmanBram FischervilleBuhle ParkDaveytonDiepslootEmbalenhleHammanskraalKagisoKanyamanzaneKatlehongKhutsongKlipfonteinKwaggafonteinKwamhlangaLangavilleLehurutsheMkhuhluMogogeloMoutse MallMusinaNew EersterusNkomaziOlievenhoutbosOrange FarmOrlandoSiyabuswaSondelaSoshanguweTembisaTokozaTshamahansiVilla LisaWindmill ParkWinterveld

Figure 12: Patient Statistics for 2017

Marketing and communication Unjani Clinics NPC does not actively market the Unjani initiative in order to recruit Professional Nurses. Most of our applications come from word-of-mouth referrals from participating Professional Nurses. However, we do have a multi-pronged marketing strategy that tells the story of our clinics – not only countrywide, but across the world.

Brand awareness Local marketing of our clinics (before and after opening) plays a significant role in patient attraction to the services offered and includes flyers, posters, signage, launch events and give-aways.

Loyalty programmeUnjani Clinics NPC has implemented a loyalty programme for patients to the clinic network. All new patients receive a loyalty card on their first visit to their local Unjani Clinic with every tenth consultation being free. The uptake to this initiative has been very positive with a continuing increase in returning patients.

Video content marketingCapitalising on the easy shareability of video content, Unjani Clinics NPC has produced several online videos to create awareness and educate an increasing online audience of visual and auditory viewers. These are available on the Unjani Clinic website, www.unjaniclinic.co.za


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Table 7: Creating awareness through online content creation (YouTube)

Unjani Clinic & Imperial Logistics | Advancing Healthcare in AfricaTackling AIDS the Unjani WayUnjani Clinic | An introduction to the Network by Lynda ToussaintUnjani Clinic | Empowering Healthcare

Public and media relations We work closely with funding organisations and local and international media to provide accurate information about the successes and challenges of our network and the people that drive it. Our hope is to educate as many people as possible about the advantages of good primary healthcare, as well as create awareness of the community clinics where patients and their families can receive low-cost high-quality private care.

Table 8: Media coverage

Broadcast media Print media

Unjani Clinics earns Johnson & Johnson STARS of AFRICA awardhttp://ehealthnews.co.za/unjani-clinics-johnson-johnson-stars-africa-award/

Skincare project aims to improve the health of 3 million babies / Citizenhttp://citizen.co.za/news

Johnson’s Baby Healthy Skin Project in Partnership with Unjani Clinichttps://www.mommyandbabyapproved.co.za

Future Growth / Diepsloot Timeshttp://www.futuregrowth.co.za/newsroom/

Against All Odds on ENCA channel 403 (DSTV)https://www.youtube.com/

New health center in PTA receives major financial boost / EWNhttp://ewn.co.za/2016/04/04/

Transforming healthcare in South Africa / CNBC Africahttp://www.cnbcafrica.com/

Clinic launched in Atteridgeville to empower black nurses / EWNhttp://ewn.co.za/2016/04/05/

Social TV Interview | Unjani Clinic Diepsloothttps://m.youtube.com

One idea, many lives / Mail & Guardianhttp://mg.co.za/article/New private clinic opens in Winterveld / Health-ehttp://www.health-e.org.za/2015/02/25/SIBMhttp://sibm.co/2013/10/17/Unjani Clinics employ quality healthcare / SA Good Newshttp://www.sagoodnews.co.za/amazing-south-african/Unjani Clinics are phenomenal success / Imperial Logisticshttp://www.imperiallogistics.co.za/imperial-news/Successful Social Franchising / Trialoguehttp://trialogue.co.za/GIZ Voice on the groundSister Gerude - Unjani Clients

Case studiesSeveral case studies have been done on the Unjani Clinics model by international and local universities and business schools, including MIT Sloan School of Management in Massachusetts, Duke University in North Carolina and Michigan University’s Ross School of Business in the United States, and the Gordon Institute of Business Science (GIBS) in South Africa.

PublicationsUnjani Clinics NPC is proud to present this Annual Report as our first internal publication, and we look forward to creating and participating in more channels to tell our story.

Awards Over the past three years, Unjani Clinics has received a number of industry accolades:

• Johnson & Johnson won Gold in the American Chamber of Commerce Stars of Africa Awards 2017 for the Unjani Clinics Project,

• The Institute of Risk Management SA Award for Healthcare (2017),• Mail & Guardian Leaders of the Future Business Award (Runner Up 2017),• Mail & Guardian Investing in the Future Health Award (2015), and • Mail & Guardian Drivers of Change Business Award (2013).

It is immensely gratifying to have our efforts acknowledged by these well-known industry organisations and to realise the value in the Unjani Clinics initiative from an external point of view.


Annual Financial Statements

26

Directors’ responsibility and approval of the annual financial statements The directors are responsible for the preparation and fair presentation of the annual financial statements of Unjani Clinics NPC, comprising the statement of Financial Position as at 30 June 2017, Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year ended 30 June 2017, and the notes to the annual financial statements, which include a summary of significant accounting policies and other explanatory notes, in accordance with the International Financial Reporting Standards and the requirements of the Companies Act of South Africa. In addition, the directors are responsible for preparing the directors’ report.

The directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and for maintaining adequate accounting records and an effective system of risk management.

The directors’ have made an assessment of the ability of the company to continue as a going concern and have no reason to believe that the business will not be a going concern in the year ahead.

The auditor is responsible for reporting on whether the annual financial statements are fairly presented in accordance with the applicable financial reporting framework.

The annual financial statements of Unjani Clinics NPC, as identified in the first paragraph, were approved by the board of directors on 20 September 2017 and signed by:

IR Barton NT Van der Walt

Director Director

Date: 20 September 2017 Date: 20 September 2017

ANNUAL FINANCIAL STATEMENTS

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Independent Auditor’s Report on the Summary Financial Statements to the directors of Unjani Clinics NPC

OpinionThe summary financial statements of Unjani Clinics NPC, which comprise the summary statement of financial position as at 30 June 2017, the summary statements of comprehensive income, changes in equity and cash flows for the year then ended, are derived from the audited financial statements of Unjani Clinics for the year ended 30 June 2017.

In our opinion, the accompanying summary financial statements are consistent, in all material respects, with the audited financial statements of Unjani Clinics NPC, in accordance with the basis of preparation and the requirements of the Companies Act of South Africa, as applicable to summary financial statements.

Summary Financial StatementsThe summary financial statements do not contain all the disclosures required by the International Financial Reporting Standards and the requirements of the Companies Act of South Africa, as applicable to financial statements. Reading the summary financial statements and the auditor’s report thereon, therefore, is not a substitute for reading the audited financial statements and the auditor’s report thereon. The summary financial statements and the audited financial statements do not reflect the effects of events that occurred subsequent to the date of our report on those financial statements.

The Audited Financial Statements and our Report ThereonWe expressed an unmodified audit opinion on the audited financial statements in our report dated 20 September 2017.

Directors’ Responsibility for the Summary Financial StatementsThe directors are responsible for the preparation of the summary financial statements in accordance with the basis of preparation and the requirements of the Companies Act of South Africa and for such internal control as the directors determine is necessary to enable the preparation of the summary financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on whether the summary financial statements are consistent, in all material respects, with the audited financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing 810 (Revised), Engagements to Report on Summary Financial Statements.

Deloitte & Touche Registered AuditorsPer: S RonanderPartner10 April 2018

Buildings 1 and 2Deloitte PlaceThe WoodlandsWoodlands DriveWoodmead SandtonPrivate Bag X6Gallo Manor 2052South AfricaDocex 10 Johannesburg

Tel: +27 (0)11 806 500Fax: +27 (0)11 806 5111

Riverwalk Office ParkBlock B41 Matroosberg RoadAshlea Gardens X6Pretoria, 0081PO Box 11007Hatfield 0028South AfricaDocex 6 Pretoria

Tel: +27 (0)12 482 000Fax: (0)12 460 3633

National Executive:*LL Bam Chief Executive Officer *TMM Jordan Deputy Chief Executive Officer, Clients & Industries *MJ Jarvis Chief Operating Officer *AF Mackies Audit & Assurance *N Sing Risk Advisory *NB Kader Africa TAX & Legal TP Pillay Consulting S Gwals BPS *JK Mazzocco Tanlent & Transformation MG Dicks Rick Independence & Legal *TJ Brown Chairman of the Board

A full list of partners and directors is available on request*Partner and Registered Auditor

B-BBEE rating: Level 1 contribution in terms of the DTI Generic Scorecard as per amended Coded of Good Practice

Associate of Deloitte Africa, a Member of Deloitte Touche Tohmatsu Limited

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Directors’ reportThe directors have pleasure in presenting their report for the year ended 30 June 2017. These annual financial statements have been prepared under the supervision of Lynda Toussaint (CA(SA)) (CEO).

Business and operations The company commenced trading on 6 May 2014. The company’s main activity is the implementation and management of the enterprise development initiative known as Unjani Clinics. This involves the empowerment of black women professional nurses to own and operate their own primary healthcare clinics in our rural and township communities.

The company’s financial position and the results of its operations are adequately disclosed in the accompanying financial statements.

DirectorsThe directors of the company at the end of the financial period and at the date of this report were as follows:

IR Barton (Dr)BJ Lawrence LA Toussaint NT Van der Walt

Going concernThe annual financial statements have been prepared on a going concern basis. The directors have made an assessment of the ability of the company to continue as a going concern and have no reason to believe that the business will not be a going concern in the year ahead.

Independent auditorsDeloitte & Touche will continue in office in accordance with Section 90 of the Companies Act of 2008.

Preparation of annual financial statementsThe annual financial statements have been prepared in accordance with the company’s accounting policies. The underlying financial information used in their compilation is in compliance with the IFRS and the requirements of the Companies Act of South Africa.

Subsequent eventsThere have been no facts or circumstances of a material nature that have occurred between the Statement of Financial Position date and the date of this report, other than the approval of the annual financial statements on 20 September 2017.

Registered office 57 Sarel Baard CrescentCenturionGateway Industrial Park0157


29


2017 R’000

2016 R’000

Donation income 13 444 531 13 020 812

Other income 166 683 0

Operating expenses (12 844 377) (10 267 402)

Operating profit 766 837 2 753 410

Investment income 290 477 253 976

Profit for the year 1 057 314 3 007 386

Other comprehensive income - -

Total comprehensive income for the year 1 057 314 3 007 386

2017 R’000

2016 R’000

Assets

Non-current assets

Property and equipment 3 3

Current assets

Trade and other receivables 1 229 518 411 446

Cash and cash equivalents 5 700 904 5 183 533

Pre-payments - 2 052

Value-added tax receivable - 86 810

6 930 422 5 683 841

Total assets 6 930 425 5 683 844

Equity and liabilities

Capital and reserves

Retained income 5 521 691 4 464 377

Current liabilities

Trade and other payables 1 372 991 1 219 467

Value-added tax payable 35 743 0

Total equity and liabilities 6 930 425 5 683 844

Statement of Comprehensive Income

Statement of Financial Position

for the year ended 30 June 2017

as at 30 June 2017

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Retained income

R

Balance at 1 July 2015 1 456 991

Total comprehensive income for the period 3 007 386

Balance at 30 June 2016 4 464 377

Total comprehensive income for the period 1 057 314

Balance at 30 June 2017 5 521 691

2017 R’000

2016 R’000

Cash flows from operating activitiesCash generated from operating activities 226 894 3 539 430

Investment income 290 477 253 976

Net cash generated from operating activities 517 371 3 793 406

Cash flows from investing activitiesAdditions to property and equipment – –

Net cash utilised in investing activities – –

Net movement in cash and cash equivalents 517 371 3 793 406

Cash and cash equivalents at the beginning of the period 5183 533 1 390 127

Cash and cash equivalents at the end of the period 5 700 904 5 183 533

Statement of Changes in Equity

Statement of Cash Flows



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Basis of preparationThese summarised financial statements have been prepared in accordance with the framework, concepts, measurement and recognition requirements of the International Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides, as issued by the Accounting Practices Committee, the Financial Reporting Pronouncements, as issued by Financial Reporting Standards Council and the Companies Act of South Africa.

These summarised financial statements for the year ended 30 June 2017 have been audited by Deloitte & Touche, who expressed an unmodified opinion thereon. The auditor also expressed an unmodified opinion on the financial statements from which these summarised financial statements were derived. A copy of the auditor’s report on the summarised financial statements and of the auditor’s report on the financial statements are available for inspection at the company’s registered office, together with the financial statements. The auditor’s report does not necessarily report on all of the information contained in this announcement. Shareholders are therefore advised that to obtain a full understanding of the nature of the auditor’s engagement, they should obtain a copy of that report together with the accompanying financial information from the registered office of the company. Any reference to future financial performance included in this announcement has not been reviewed or reported on by the company’s auditors.

The preparation of these summarised financial statements was supervised by the Chief Executive Officer, Lynda Toussaint (CA(SA)).

The directors take full responsibility for the preparation of the summarised financial statements and the financial information has been correctly extracted from the underlying financial statements.

Accounting policies The accounting policies and methods of computation used are consistent with those applied in the preparation of the annual financial statements.

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List of abbreviations/acronymsBatho Pele Sotho: “People First” – a South African political initiative. The initiative was first introduced by

the Mandela Administration on October 1, 1997 to stand for the better delivery of goods and services to the public

B-BBEE Broad-based Black Economic Empowerment

Companies Act The Companies Act 2008 (Act No. 71 of 2008)

CIPC Companies and Intellectual Property Commission

CSI Corporate Social Investment

E4D Employment for Sustainable Development in Africa

EDA Enterprise Development Agreement

GIZ The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

ICT Information and Communications Technology

IFRS International Financial Reporting Standards

Income Tax Act Income Tax Act 1962 (Act No. 58 of 1962)

ISAs International Standards on Auditing

IRBA Independant Regulatory Board for Auditors

NCS National Core Standards for Health Establishments in South Africa

NDP National Development Plan

NHA National Health Act, 2003, as amended (Act No. 61 of 2003)

NHI National Health Insurance

NPQ National Policy on Quality in Healthcare, 2007

PAIA Promotion of Access to Information Act, 2000 (Act No. 2 of 2000)

PoPI Protection of Personal Information Act, 2013 (Act No. 4 of 2013)

SME Small and Medium Enterprise

the dti The Department of Trade and Industry

Unjani isiZulu: “How are you?”

Unjani Clinics NPC Unjani Clinics Non-profit Company

WHO World Health Organization

LIST OF ABBREVIATIONS/ACRONYMS

www.unjaniclinic.co.za

annual report 2017 - unjani clinic clinics annual report 2017.pdfunjani clinics – annual report...

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